INTERNATIONAL BUSINESS GROUP ASSIGNMENT topic accessing the political legal environment

NATIONAL ECONOMICS UNIVERSITY
ADVANCED EDUCATIONAL PROGRAMS

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INTERNATIONAL BUSINESS
GROUP ASSIGNMENT
Topic: Accessing the Political-Legal Environment

Instructor
Class
Group number

Member

Hanoi, November 2021

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TABLE OF CONTENTS
t

t

GROUP t11 t - t GENERAL t INFORMATION.................................................................................. 3
TABLE tOF tFIGURES........................................................................................................................... 4
I t- t About t Amazon................................................................................................................................. 5
II t- t An toverview t about t Logistics t in tSingapore............................................................................ 5

1. tCurrent t market t scenario............................................................................................................ 5
1.1. tGDP tbreakdown........................................................................................................................ 5
1.2. tIndustry tProfile......................................................................................................................... 6
1.3. tRecent tDevelopment................................................................................................................ 6
2. t Politics.............................................................................................................................................. 7
3. tGovernment t regulations t and t recent t political t development t that t impact t the teconomic
tand tbusiness t environment t of t Singapore....................................................................................... 8

3.1. tOverview..................................................................................................................................... 8
3.2. tChallenges.................................................................................................................................. 8
3.3. tOpportunities............................................................................................................................. 9
4. tCorporate t tax t in tSingapore....................................................................................................... 9
4.1. tOverview tabout tCorporate tTax.............................................................................................. 9
4.2. tCorporate tTax tRate................................................................................................................ 10
4.3. tTaxable tIncome....................................................................................................................... 10
4.4. tTax tResidency.......................................................................................................................... 10
4.5. tTax tincentives.......................................................................................................................... 11
4.5.1. tTax t exemptions t for t new t businesses.......................................................................... 11
4.5.2. t Tax t exemption t for t foreign-sourced t income............................................................ 11
4.6. tTax tTreaties.............................................................................................................................. 11
5. tTrade t barriers.............................................................................................................................. 12
5.1. tTariff tand tother ttax................................................................................................................ 12
5.2. tForeign texchange tcontrol.................................................................................................... 12
5.3. tOwnership trestriction............................................................................................................ 12
6. tHost t government t efforts t to tattract t foreign t investment t (using t PEST t method). . .12
6.1. tPolitical..................................................................................................................................... 12
6.2. tEconomic................................................................................................................................. 13
6.3. tSocial......................................................................................................................................... 13
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6.4. tTechnological.......................................................................................................................... 13
7. tIntellectual t Property................................................................................................................... 13
7.1. tPatent tRight tObject................................................................................................................ 14
7.2. tTrademarks.............................................................................................................................. 14
7.3. tCopyright.................................................................................................................................. 15
7.4. tTrade tSecret............................................................................................................................. 15
III t- t Amazon t in tSingapore t – tOpportunities t and t Challenges............................................... 16
1. t Opportunities............................................................................................................................... 16
1.1. tAmazon tbrand tcharacteristics tsuitable tfor tSingapore tmarket...................................... 16
1.2. tThe tbooming te-Conomy tin tSoutheast tAsia....................................................................... 16
2. tChallenges...................................................................................................................................... 18
2.1. tAmazon tplatform thasn’t tsuited twith tSingaporean tpreference..................................... 18
2.2. tSingaporean tshopping thabits............................................................................................... 19
2.3. tCompetition twith tother tecommerce tplatforms................................................................. 19
IV t– tRecommendations t for t Amazon............................................................................................. 20
1. tOffline-store.................................................................................................................................... 20
2. tImproving tonline tplatform.......................................................................................................... 21
REFERENCES...................................................................................................................................... 22

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GROUP 11 - GENERAL INFORMATION
t

t

t

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Group t 11 t consists t of t five t members t with t the t following tinformatio
No

Full tname

1

Trịnh tKhánh tHuyền

2

Vũ tThị tHuyền tTrâm

3

Ngô tQuỳnh tHương

4

Nguyễn tNgọc tHiếu

5

Phạm tThùy tLinh

3

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TABLE OF FIGURES
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t

Figure t 1: t Top t 10 t e-commerce t sites t in tSingapore t 2021 t
(Offline ttraffic tin tmillion tvisits).......................................................................................................... 5
Figure t2: tRanking tof tSingapore's te-commerce tsites.................................................................... 18
Figure t3: tThe tmost tpopular tonline tplatforms tin tSingapore...................................................... 19

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I - About Amazon
t

t

t

Amazon’s tfirst t appearance t in t Singapore t with t the t Prime t Now t app t - t its t fast t
delivery t service tin tJuly t 2017, t but t not t until t October t 2019 t that t Amazon t launched t its twebsite t

in tSingapore t“Amazon.sg”, tmarked t its t official t market t expansion t in t the t Singapore t Ecommerce t market. t Since t2018, tAmazon t was t expected t to t enter t Southeast t Asian t and t firstly t
Singapore. t After tmaking t entry tin tUnited t Arab t Emirates t and t Turkey t in t late t 2019, t the t next t
th

expansion t of t Amazon t was t Singapore t– tits t 16 tglobal t market t place. t The t main t reasons t that t
many t experts t anticipated t the t expansion tof tAmazon tinto tSingapore twere tits twell-managed
tinfrastructure, tas twell tas taffluence tand twesternization t(Choudhury, 2017). tIn t2020, tAmazon tin
tSingapore trecognized ta tnet tsales tof tUS t$92.8 tmillion tand talso tranked t3rd tplace ton t“Top t10 tecommerce tsites tin tSingapore tas tof tthe tfirst tquarter tof t2021”, tby tmonthly ttraffic t(Müller, 2021). t

Figure t 1: t Top t 10 t e-commerce t sites t in tSingapore t 2021 t (Offline t traffic t in tmillion tvisits)

II - An overview about Logistics in Singapore
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1. tCurrent t market tscenario
1.1. tGDP tbreakdown t
Singapore tis thome tto tthe tworld's tlargest tcontainer tport twhich tis tconnected tto tmore tthan
t120 tcountries tand tover t600 tports tworldwide, tand talso thas tone tof tthe tlargest tcargo tairports, tlinking

tit twith tmore tthan t180 tcities tglobally. t

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Singapore tis tone tof t the tworld’s tmost t open teconomies, t and t it t has t the tworld’s thighest t trade

to tGDP t ratio, t with t the t total t trade t reaching t more t than t 300% t of t the t GDP. t This t reflects t the
tcountry’s trole t as t a t trading t port t and t an t oil t and t gas t hub, t as t well t as t its t participation t in t
regional tsupply tchains, t which t has, t over t time, t led t to t a tsignificant t increase t in t the t trade t of t
intermediate tgoods. t
t

t
t
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In taddition, tSingapore’s tsea tand tairports tare teasily taccessible tthrough tits twell-planned
domestic troad tnetwork, tparticularly twith tongoing theavy tpublic tinvestment tin troad tand trailway
infrastructure. tAccording tto tthe tMinistry tof tTrade tand tIndustry tof tSingapore, tthe tLogistics
(Transportation t& tStorage) tsector tcontributed tto t6.7% tof tSingapore’s tGDP tas tof t2013, t9% tas tof

2010, tand t5.4% tas tof t2020. tThere tare tmore tthan t7,000 tlogistics tcompanies tin tSingapore,
employing tover t180.000 tpeople, tincluding tthose tin tthe tsub-segment tof ttransportation, tpostal, tand
tcourier, tcontributing tto t12.3% tof ttotal temployment tin tthe tcountry. t
t
t

1.2. tIndustry tProfile
Singapore thas talways tbeen ta tstrong tperformer tin tthe tglobal tlogistics tscene tand tis
tconsidered tone tof tthe tworld’s tleading tlogistics tclusters, tthanks tto tits tworld-class tlogistics
tinfrastructure, tglobal tconnectivity, tefficient tcustoms thandling, tliberal ttaxation tpolicies tand
tespecially tthe trise tof tthe tASEAN tregion tas ta tnew teconomic tpowerhouse, tconsidering tits tlocation
tin tthe theart tof tSoutheast tAsia tand tat tthe tcenter tof tmajor tshipping tlanes. tThe tWorld tBank thas
tranked tSingapore tas tthe tNo.5 tLogistics tHub tamongst t160 teconomies tglobally tin tthe t2014
tLogistics tPerformance tIndex.
t

Singapore’s tseaport tis tlinked tto t600 tports tin t123 tcountries tvia t200 tshipping tlines, twith
daily tsailing tto tevery tmajor tport tof tcall tin tthe tworld, twhile tits tChangi tairport tis tserved tby tabout
t6.800 tweekly tflights tconnecting tto t280 tcities tin t60 tcountries.
t

Singapore thas tbecome tthe tpreferred tlogistics tand tsupply tchain tmanagement thub tfor
tleading tplayers tacross tindustries tsuch tas taerospace, tbiomedical tscience, tpetrochemical, telectronics
tand ttelecommunications. tSingapore tis talso ta tglobal thub tfor tthird-party tlogistics tproviders t(3PLs),
tproviding tlarge tscale tservices tranging tfrom tair tfreight, tcustoms tbrokerage, tocean tfreight, tlocal
ttransportation, twarehousing tand tdistribution tto tcustomized tsupply tchain tsolutions tor tother tvalueadded tservices tfor tproducts tin tor ttransiting tSingapore. tIn taddition, tSingapore tis ta tlogistics thub tfor
tleading tmanufacturers tacross tindustries, twhich tinclude tAvaya, tDiageo, tDell, tHewlett tPackard,
tInfineon, tLVMH, tNovartis, tON tSemiconductor, tPanasonic tas twell tas tSiemens tMedical
tInstruments. t
1.3. tRecent tDevelopment t
March t2021: tCollins tAerospace tin tSingapore tawarded ta ttwo-year tin-factory tlogistics
support tcontract tto tglobal tlogistics tand tsupply tchain tcompany tCEVA tLogistics. tThe tcontract twill
tsee tCEVA tLogistics tdeliver tvarious tcontract tlogistics tservices, tincluding tinbound treceiving tto
tinventory, tpick tand tkit, tas twell tas tthe toutbound tdispatch tof toverhaul taerospace tparts.
t

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March t 2021: t Braskem t is tpartnering t with t logistics t firm t A.P. t Moller t - t Maersk t and tport
toperator tPSA tCorp t to topen t a t new t logistics t hub t in t Singapore t as t it t seeks t to t better t manage tits
tpolymers tsupply tfor tthe tregion t
t

2. tPolitics
Singapore tis tan tisland tstate tlocated tat tthe ttip tof tthe tMalay tpeninsula. tIt twas tformerly ta
tBritish tcolony tand tonly tbecame ta tfully tindependent tcountry tin t1965. tThe tPeople’s tAction tParty
t(PAP), tguided tby tthe tideas tof tthe tlate tprime tminister tfrom t1959-90, tLee tKuan tYew, thas tdominated
tpolitics tsince tthen. tThe tPAP’s tsuccess thas tbeen tfounded ton ta tcombination tof teconomic tdynamism
tand tits tability tto trestrict tsupport tfor tSingapore’s tweak tand tdivided topposition tparties. t
Political tstructure tincludes: tSingapore tis ta tparliamentary tdemocracy. tThe tprime
tminister tand tthe tcabinet tare tappointed tby tthe tpresident tand tresponsible tto tparliament. tThe
tpresident thas tvery tlittle tpower tother tthan this trole tin tappointing tthe tprime tminister. tThe tprime
tminister tsets tpolicy tin tthe tcountry. tThe trequirements tfor tthe tpresidency tare tvery tstringent,
tincluding thaving tto tfulfill ta tpublic tsector tor tprivate tsector trequirement. tIn t2017, tthere twas tan
tadditional trequirement tthat tthe tpresident tbe tMalay, tas tit tis ta tracial tgroup twhich thad tnot tbeen
trepresented tfor t30 tyears. tA tConstitutional tCommission tin t2016, tper tthe tdirection tof tPrime
tMinister tLee tHsien tLoong, trecommended tthese tchanges. tThe tpresident, tHalimah tYacob, twas
telected tfor ta tsix-year tterm ton tSeptember t14, t2017. tShe tbecame tpresident twithout tan telection tas
tshe twas tdeemed tthe tonly teligible tcandidate tgiven ther tbeing tMalay tand thaving tserved tin tpublic
toffice, tleading tto tprotests taround tthe telectoral tprocess. t t
Singapore thas ta tsingle-body tparliament, twhich tsits tfor tfive-year tterms. tThe tlast telection
was tin tSeptember t2015. tThe tlegislature thas t89 telected tmembers: t13 tmembers tof tparliament t(MPs)
tare tdirectly telected tfrom tsingle-member tconstituencies, tand t76 tare telected tin tteams tof tfour tto tsix

tto trepresent tthe t15 tgroup-representation tconstituencies t(GRCs). tGRCs twere tintroduced tin t1988 tto
thelp tensure tminority trepresentation tin tParliament tby trequiring tthat tall tteams tof tGRC
trepresentatives tinclude tat tleast tone tmember tof ta tminority tgroup t(nonChinese tethnicity). tThe tnext
tparliamentary telection twill ttake tplace tby tJanuary t2021. tThe truling tPeople’s tAction tParty t(PAP)
twon t69.9% tof tthe tvote t(or t83 tseats tin tparliament) tin tthe tSeptember t2015 telection. tThe tcurrent
tPrime tMinister tis tLee tHsien tLoong, teldest tson tof tLee tKuan tYew. tSingapore thas tdone twell tin tits
tfight tagainst tcorruption. tIt twas tranked tthe tthird tleast tcorrupt tcountry tin tthe tworld tin tthe
tTransparency tInternational tCorruption tPerceptions tIndex t2020. t
t

However, tthe tSingaporeans tface tsevere trestrictions ton ttheir tbasic trights tto tfreedom tof
texpression, tassociation, tand tpeaceful tassembly t(Human tRights tWatch, t2019). tIn tthis tconnection, tit
tis tworth tnoting tthat tthe tgovernment tof tSingapore thas trejected tthe tcriticisms tof tHuman tRights
tWatch.

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3. tGovernment t regulations t and t recent t political t development t that t impact t the
teconomic t and tbusiness tenvironment tof tSingapore
3.1. t Overview t
Singapore tis ta t major t US tpartner, t with t a tbilateral, t gold-standard t Free t Trade t
Agreement t(FTA) tnegotiated t in t 2003 t and t effective t on t January t 1, t 2004 t - t the t first t US t FTA t
agreed t in t Asia. t In t2020, tthe t city-state t was t the t 14th t largest t export t market t for t the tUnited t
States, t importing t $27.1 tbillion tin t products. t After t China, t Malaysia, t and t Taiwan, t the t United t
States t was t Singapore's t fourth tlargest tsupplier t of t imports. t Japan, t South t Korea, t Indonesia, t
France, t Thailand, t and t Germany t were tthe tother tmain tsuppliers. t
Singapore's treal tGDP tfell tby tan textraordinary t5.4 tpercent tin t2020 tas ta tresult tof tthe

tglobal tCovid-19 tepidemic. tLast tyear, tthe tgovernment tcommitted tCovid-19 tsupport tacross tfive
tbudget trevisions tto tsave tand tincrease temployment, tand tassigned tconsiderable tfunds tto tlong-term
tinfrastructure tinvestments, tworkforce tupskilling, tand tdigitalization tin tattempt tto tsurvive tan
tinternational tcenter tfor tbusiness, tresearch tand tinnovation, ttrade, tand tfinance. tThe teconomy tis
tanticipated tto texpand tbetween t4% tand t6% tin t2021, treflecting tthe tefficacy tof tSingapore's
textraordinary tstimulus texpenditure tand trecovery tmeasures. tSingapore twas tplaced tsecond toverall
tin t"Ease tof tdoing tbusiness" tby tthe tWorld tBank's tDoing tBusiness t2020 treport, twhile tthe tWorld
tEconomic tForum tranked tSingapore tas tthe tmost tcompetitive teconomy tin tthe tworld.
Companies tin tthe tworld tshould tconsider texporting tto tSingapore tfor tthe tfollowing treasons: tAs
a tmajor tdistribution, tlogistical, tand tcommercial tcentre, tmany tregard tit tas tthe tentrance tto tthe tSoutheast
tAsian tarea; tTransparency tand tthe tabsence tof tcorruption; tBusiness-friendly tlegislation tand tregulations;
tStrong tintellectual tproperty tsafeguards; tThe tpopulation tthat tspeaks tEnglish.
t

3.2. tChallenges t
Singapore tis ta tfree tport, twith talmost t99 tpercent tof tall timports tentering tduty-free. tIt
imposes thigh tsales ttaxes ton tdistilled talcohol tand twine, ttobacco tgoods, tmotor tvehicles, tand tfuel tfor
tsocial tand/or tenvironmental tconcerns. tAmerican tfirms toperating tin tSingapore tface tsignificant
tcompetition tfrom tworldwide tsuppliers. tAs tthe tcountry tcontinues tto treorganize tits teconomy, tfirms
tdoing tbusiness tin tthe tcity-state tshould texpect thigher toperational texpenses tand ta tcontinuing
tscarcity tof tforeign tworkers tas ta tresult tof tthe tCovid-19 tepidemic.
t

Technical timport trestrictions tfor tbeef, tpork, tand tpoultry tproducts texist, tas tdo tlabeling
tbarriers tfor tpre-packaged, tnon-alcoholic tdrinks. tProhibition ton tthe tuse tof tsatellite tdishes, tjudicial,
tfinancial, tand thealthcare tservices tare telements tof tservice tobstacles. tDespite tSingapore's toverall
tstrong ttradition ton tintellectual tproperty t(IP) tprotection tand tsecurity, tUS tinvolved tparties tremain
tconcerned tabout tstrict tenforcement tagainst tinfringing tgoods ttransshipped tthrough tSingapore, tas
twell tas tthe tuse tof tunauthorized tstreaming tservices tand tthird-party tillicit tstreaming tdevices tto
taccess tpirated tcontent.

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The tCovid-19 tepidemic, tin taddition tto tconcerns tlike tas tan taging tworkforce, ta tmaturing
economy, tthe tgrowing timpact tof tsocial tmedia, tand tincreased tcompetition tfrom tinternational ttrade
tagreements tand tASEAN tneighbors, thas tbrought tnew tchallenges tin tSingapore. tSingapore tis tlargely
treliant ton tforeign tlabor, twho taccount tfor tabout tone-third tof tthe tworkforce. tStrict tgovernment
tregulations thave thad ta tnegative timpact ton tfirms, tparticularly tthose tthat trely tsignificantly ton
tforeign tlabor.
t

3.3. tOpportunities
The tfollowing tindustrial tsectors tin tthe tcountry tprovide texcellent tprospects tfor
texporters: tEnvironment tand tEnergy; tDigital tTechnologies tand tICT; tAviation tand tDefense;
tHealthcare tand tMedical tTechnology.

t

Furthermore, tmajor tinfrastructure tprojects tand tgovernment tacquisitions tplay tan
essential tpart tin tSingapore's tcommercial topportunities. t

Firstly, tSingapore's tNext tGeneration tPort tVision tfor tTuas tTerminal twill tbe tbuilt tin tfour
phases, twith ttenders tgranted tfor tPhases t1 tand t2; tthere twill tbe ttwo tmore tphases tof tcontracts tto
tcomplete tthe tfuture tport tby t2040. tSecond, twater ttechnology tand tinfrastructure tadvancements tin
tareas tsuch tas trainfall tmonitoring, tmodern ttechniques tare tincluded tfor tcoastal tprotection, tand trealtime tdetection tof tbanned torganic tmaterials tin tsewers. tThirdly, tin tterms tof tenhancing tthe
tenvironment, tthe tSingapore tgovernment tplans tto tbuild tadditional tsolar tpanels tin torder tto tincrease
tsolar tenergy tconsumption tto t1.5 tto t2.0 tGW tby tthe tend tof tthe tdecade. tTo tminimize tcarbon tdioxide

temissions, tthe tsun tis tused tto tgenerate tenergy ton tdams tand trooftops. tIn tregarding ttechnological
tdevelopment, tSingapore tPower's tUS$22.55 tmillion tCenter tof tExcellence taims tto tcreate tnextgeneration tnetwork ttechnologies tfor timproved treliability tand tefficiency tin tpower ttransmission tand
tdistribution tover tthe tnext tdecade. tFurthermore, tthe tSingapore tgovernment tspends tan testimated
t$750 tmillion ton tcybersecurity. tOther tinfrastructure tinvestments tinclude tthe tconstruction tof
tSingapore's tChangi tAirport tTerminal t5 tand ta tthird trunway, tboth tof twhich tare talso texpected tto tbe
tcompleted tin tthe t2030s.
t

4. tCorporate t tax tin tSingapore
4.1. tOverview tabout tCorporate tTax t
Singapore tcharges tprofits ttaxes trather tthan trevenue ttaxes. tProfits tfrom tSingapore
tbusiness twill tbe ttaxed tat ta trate tof t17 tpercent t(with tan teffective ttax trate tthat tis tfrequently tlower
tbecause tof tseveral ttax tincentives tand ttax texemptions tavailable tto tSingapore-resident tbusinesses). t
Singapore temploys ta tterritorial ttaxation tsystem. tWhen tincome tis tgenerated tin ttreaty
tnations, tdouble ttaxation tis tavoided tby tthe tuse tof ta tforeign ttax tcredit tprovided tby tsuch ttreaties.
tNon-treaty tnations treceive ta tunilateral ttax tcredit tfor tforeign ttax ton tall tforeign-sourced tincome.
tSingapore thas tover t80 ttax ttreaties twith tforeign tnations tin torder tto tprevent tincome tdouble ttaxation.

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Singapore thas t a t one-tiered t tax t system. t Profits t are t the t only t thing t that
corporations t pay tin ttaxes. tDividends t paid t to t shareholders t from t post-tax t profits t are ttax-free.

t

Capital tgains tare tnot ttaxed tin tSingapore.
Singapore tprovides tsignificant ttax tbreaks tand tincentives tfor tinvestments tin tinnovative

tand tpromising tsectors, tR&D, tand tproductivity-enhancing ttechnology.
Certain ttypes tof tforeign-source tincome tare talso tnot ttaxed tin tSingapore.
4.2. t Corporate t Tax tRate
Current ttax trates: t t
Type t of t corporate ttax
Tax ton tcorporate tprofits
Tax trate ton tcapital tgains tby tthe tcompany
Tax trate ton tdividends tdistributed tto tshareholders
Tax trate ton tforeign-sourced tincome tthat twas talready tsubjected tto
ttaxation toverseas
Singapore's tcurrent theadline ttax trate tis tset tat t17%. tHowever, twith tthe tSingapore
government's ttax texemption tand tincentive tschemes, tthe teffective ttax trate tfor tbusinesses tcan tbe
tsubstantially tlower.
t

4.3. tTaxable tIncome
Qualifying tincome tearned tin tSingapore tand tmoney ttransferred tto tSingapore tfrom ta
tforeign tsource tare tboth ttaxable tunder tSingapore's tterritorial ttax tsystem. tTaxable tincome tin
tSingapore tincludes: tProfits tor tgains tfrom tany ttrade tor tenterprise; tInterest tand trental tproperty
trevenue tare tforms tof tinvestment tincome; tRoyalties, tpremiums, tand tany tother tproperty-related
tearnings; tOther tgains tthat tare tregarded tas trevenue.
4.4. tTax tResidency
A tSingapore-incorporated tbusiness tis tnot tautomatically tdeemed ta tSingapore ttax
tresident. tTo tbe tdeemed ta tSingapore ttax tresident, ta tfirm tmust tbe tmanaged tand tcontrolled tin
tSingapore. t tAccording tto tIRAS, tit trefers tto t"making tstrategic tdecisions, tsuch tas tthose ton tbusiness
tpolicy tand tstrategy".
The tlocation tof tboard tmeetings, tin tgeneral, tis tan timportant taspect tin tdeciding twhere ta
firm tis tgoverned tand toperated. tFurthermore, tthe tlocation tof tcompany tpersonnel twho tplay tan
timportant tpart tin tcompany tdecision tmaking tmight tinfluence ttax tresidence. tTypically, ta tbusiness tis
tconsidered ta tnon-resident tif tboard tmeetings tand tkey tmanagement tstaff tare theld toutside tof

tSingapore, teven tif tthe tfirm's tday-to-day tactivities tare tconducted tin tSingapore.
t

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For texample, tforeign-based tholding tcorporations tthat tmerely tproduce tresidual tincome
are ttypically tdeemed tnon-residents tsince tthey tare tmanaged ton tdirections tfrom towners tand
tshareholders tsituated toutside tof tSingapore. tIt tshould tbe tnoted tthat ta tcompany's ttax tresidence
tmight tfluctuate tfrom tyear tto tyear.
t

The tAdvantages tof tBeing ta tTax tResident tin tSingapore: tTax tbenefits tare tgiven tvia
tAvoidance tof tDouble tTaxation tAgreements t(DTAs); tExemption tfrom ttaxation ton tnon t- tresident
tdividends, tforeign-sourced tearnings, tand tforeign-sourced tservice tincome; tTax tbreaks tfor tnew
tbusinesses
4.5. t Tax tincentives
4.5.1. tTax t exemptions t for t new t businesses
To tassist tlocal tbusinesses tin tgrowing, tSingapore tlaunched tthe tnew tstartup tcompany
tplan tin t2005, twhich tgives ttax texemption ton ta tportion tof ta tstartup's tprofits. tAll tnew tbusinesses
tthat tsatisfy tthe tfollowing trequirements tare teligible tfor tthe ttax tbreak. tFirstly, tthe tfirm tmust tbe
tregistered tin tSingapore. tSecondly, tthe tfirm tmust tbe ta tSingapore ttax tresident. tThirdly, tthe tfirm
tcannot thave tmore tthan t20 tshareholders tunless tall tof tthem tare tpeople t"beneficially tand tdirectly"
towning tthe tshares tin ttheir town tnames tOR tat tleast tone tstakeholder tis ta tperson t"beneficially tand
tdirectly" tholding tat tleast t10% tof tthe tcompany's tissued tcommon tshares.
It tshould tbe tnoted tthat tcertain tbusinesses tare tnot tauthorized tto tuse tthe ttax tscheme,
tincluding: tCompanies twhose tprimary tfunction tis tholding tinvestments tand tcompanies twhose
tprimary tbusiness tis tthe tdevelopment tof treal testate tfor tsale, tinvestment, tor tboth.

4.5.2. t Tax t exemption t for t foreign-sourced t income
Certain tforms tof tforeign-sourced tincome tare ttax-free, tincluding: tDividends tfrom
tinternational tentities; tProfits tfrom tforeign tbranches; tService tincome tderived tfrom tabroad
Foreign-sourced tincome ttransferred tto tSingapore tmust tfulfill tall tcombination tof tthree
requirements tin torder tto tbe ttax-exempt. tFirstly, tat tthe tmoment tthe tforeign tincome tis tobtained tin
tSingapore, tthe tforeign tjurisdiction's theadline ttax trate tis tat tleast t15%. tSecondly, tthe toverseas
tincome twas ttaxed tin tthe tforeign tjurisdiction t(the trate tat twhich tforeign tincome tis ttaxed tmay tdiffer
tfrom tthe trate tat twhich tthe theadline ttax tis tlevied). tThirdly, tthe tSingapore tgovernment tis tsatisfied
tthat tthe ttax tbreak twill tbenefit tthe tindividual tresiding tin tSingapore.
t

4.6. tTax tTreaties
Singapore thas tsigned tAvoidance tof tDouble tTaxation tAgreements t(DTAs) twith tover t80
tjurisdictions, tincluding tmajor teconomies tin tthe tAmericas, tEurope, tand tAsia, tto treduce tthe ttax
tburden ton tfirms tthat treceive trevenue tfrom toverseas tsources. tDTAs tminimize tor teliminate ttaxes ton
tforeign tincome tthat thas talready tbeen ttaxed tin tanother tcountry.
In tsome tcases, ta ttax tcredit tmay tbe tprovided. tIf tthe tforeign ttax twas tpaid tin tline twith tthe
DTA trequirements, tthe tdifference tbetween tthe tforeign ttax tpaid tand tthe tSingapore ttax tthat twould
thave tbeen tdue ton tthe tsame tincome tis tcomputed. tIf tthe tfirm tpaid tany textra ttax ton tthis testimated
t

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amount tin tanother tnation, t it t can t be t claimed t as t a t tax t credit t in t Singapore, t a t practice t known t
as tDouble tTaxation t Relief t (DTR). t Under t DTR, t a t firm t can t claim t a t portion t of t its t overseas t
tax tpayable tagainst tits tSingapore tincome ttaxes tand tobtain ta trefund tfrom tIRAS.
t

Furthermore, tthe tSingapore tgovernment thas tgiven ta tunilateral ttax tcredit tto tfirms twith
foreign trevenue tderived tfrom ta tcountry tthat tdoes tnot thave ta tDTA twith tSingapore tsince t2008.
tCompanies tmust tsatisfy tthe tfollowing tconditions tin torder tto tget ta tforeign ttax tcredit. tFor tthe
trelevant tbase tyear, tthe tfirm tis ta tSingapore ttax tresident. tMoreover, tin tthe tforeign tjurisdiction, tthe
ttax thas tbeen tpaid tor tis tdue ton tthe tsame tincome tand tin tSingapore, tincome tis tsubject tto ttaxes.
t

5. tTrade tbarriers
5.1. t Tariff t and t other ttax
More tthan t99% tof tall timports tinto tSingapore tenter tthe tcountry tduty-free tdue tto tthe tfact
tthat tSingapore tis ta tfree tport twith tan topen teconomy. tSingapore timposed theavy texcise ttaxes ton
tdistilled tspirits tand twine, ttobacco tproducts, tmotor tvehicles, tand tpetroleum tproducts tfor tsocial tor
tenvironmental treasons.
Singapore tlevies ta t7% tGoods tand tServices tTax t(GST), twhich tis tset tto tbe tincreased tto
9% tbefore t2025. tThe ttaxable tvalue tfor tGST ton tdutiable tgoods tis tcalculated tusing tthe tCIF t(Cost,
tInsurance, tand tFreight) tvalue tplus tall tduties tand tother tcharges. tIn tthe tcase tof tnon-dutiable tgoods,
tGST twill tbe tcalculated tusing tthe tCIF tvalue tplus tany tcommission tor tother tincidental tcharges,
tregardless tof twhether tthey tare tshown ton tthe tinvoice. tIf tthe tgoods tare tdutiable, tthe tGST twill tbe
tcollected tat tthe tsame ttime tas tthe tduties. tSpecial trules tapply tto tgoods tkept tin tlicensed twarehouses
tand tfree ttrade tzones.
t

5.2. tForeign texchange tcontrol
Payments, tcapital ttransfers tand tremittances tcan tbe tmade tin tany tcurrency tand t
tany tcountry twithout tprior.
5.3. tOwnership trestriction
There tare tno trestrictions ton tforeign townership tof tbusiness tin tSingapore, texcept
tfor tnational tsecurity treasons tand tareas tsuch tas tair ttransportation, tpublic tutilities, tnewspaper
tpublishing, tand tshipping. t t

6. tHost tgovernment tefforts tto tattract tforeign tinvestment t(using tPEST tmethod)
6.1. tPolitical
Singapore tis ta tparliamentary tdemocracy. tIt tis tone tof tthe tmost tstable tcountries tin
south-east tAsia. tIt tis talso ta tmember tof tthe tIMF, tthe tWorld tBank, tASEAN, tAPEC, tthe tUN,
tthe tCommonwealth, tand tsome tother tprestigious tinstitutions. t
t

Singapore tmaintains tvery tgood trelations twith tChina, tthe tUSA, tand tsome tother
highly tdeveloped tand tpowerful tcountries tin tthe tworld. tInterestingly, tit talso tmaintains tgood
trelations twith tNorth tKorea. t
t

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However, tits trelations t with t neighboring t countries t such t as tMalaysia t and t
Indonesia t have tbeen tcumbersome tat ttimes tparticularly tdue tto tdisputes tover tborder tissues.
6.2. tEconomic
Singapore tis tthe t38th tlargest teconomy tin tthe tworld. tIt tis talso tone tof tthe tfour tAsian
tTigers tor tAsian tDragons tthat tare tso tnamed tas tthey tare thighly tdeveloped teconomies twith thighly
teducated tand tproductive twork tforces. tSingapore tis talso tthe t5th tlargest trecipient tof tFDI tinflows
tin tthe tworld, tafter tthe tUS, tChina, tthe tNetherlands tand tHong tKong.
6.3. tSocial
Singapore tis tone tof tthe twealthiest tnations tin tthe tworld. tIt tis ta tmulti-ethnic tcountry twith ta
total tpopulation tof t5.704 tmillion tas tof t2019. tThe tlife texpectancy tfor tmen tis t79 tyears, twhile t84
t(years tfor twomen. tSingapore tfollows ttraditional tfamily tvalues. tLiteracy trate tin tthe tcountry tis
tvery thigh. tGood tcommand tof tEnglish tand tChinese tlanguages thelps tto tattract tinternational ttrade
tand tforeign tinvestment. tThis tcountry talso tfaces tsome tsocial tchallenges tsuch tas tthe tageing

tpopulation, trising tcosts tof tliving, thigh tdivorce trates, toccasional ttensions tbetween tethnic tgroups,
tand tincome tinequality.
t

6.4. tTechnological
Singapore tis tone tof tthe tworld’s tmost ttechnologically tadvanced tcountries. tAnd tIT thas tthe
tfastest tinternet tin tthe tworld. tMore tthan t10Mbps t(Megabit tper tsecond) tof tbroadband tinternet
tservice tis tavailable. tThe twidespread tIT tinfrastructure thas tencouraged tmultinational tcompanies
tto tset tup tregional toperations tin tSingapore. t80 tof tthe ttop t100 ttechnology tfirms tin tthe tworld thave
ta tpresence tin tSingapore.

Besides, tSingapore thas ta tprogram twhich tfirst tfocuses ton tthe tuse tof tblockchain tin ttrade,
logistics tand tthe tsupply tchain. tBlockchain tand tcryptocurrency tregulation t2021 tof tSingapore
tinclude tfollowing tsectors: tGovernment tattitude tand tdefinition; tVirtual tcurrency tregulation;
tSales tregulation; tTaxation; tMoney ttransmission tlaws tand tanti-money tlaundering trequirements;
tPromotion tand ttesting; tOwnership tand tlicensing trequirements; tMining; tBorder trestrictions tand
tdeclaration tand tReporting trequirements. t
t

7. tIntellectual tProperty
Intellectual tproperty tis ta tcollective tterm: tit tincludes tthe texclusive trights tof tindividuals
tand
tlegal tentities tto tthe tresults tof tintellectual tactivity tand tthe tequivalent tmeans tof
tindividualization tof tthe tlegal tentity, tproducts, tworks tor tservices tprovided.

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Intellectual tproperty t objects t are t divided t into t the t following tcategories:

7.1. t Patent t Right tObject
A tpatent tis ta tproperty tright tavailable tto tanyone twho tinvents tor tdiscovers ta tnew tand
tuseful tprocess, tmachine, tarticle tof tmanufacture, tor tcomposition tof tmatter, tor tany tnew tand tuseful
timprovement tthereof, twhich tgives tthe towner tof tthe tinvention tthe tright tto texclude tothers tfrom
tmaking, tusing, tselling, toffering tto tsell, tor timporting tinto tthe tSingapore tthe tpatented tmaterial tfor ta
tlimited tamount tof ttime. t
In tthe ttransportation tindustry, tinnovative tsolutions, twhen tpatented, tcan tprovide ta
business tadvantage tover tthe tcompetition. tFor tthose tinnovative tsolutions, tpatent tprotection tmay tbe
ta tvery tappropriate toption. tWhen tdetermining twhich tintellectual tproperty tshould tbe tconsidered tfor
tpotential tpatent tprotection, tit tis timportant tto tnote tthat, tunlike ttrademarks tand tcopyrights, tpatents
tmust tbe tfederally tregistered—common tlaw tpatent trights tdo tnot texist. tIn taddition, tit tis tcritical tthat
tinventors tdo tnot tdisclose ttheir tinvention tto tthird tparties. t
t

7.2. tTrademarks
A ttrademark tis ta tword, tshort tphrase, tsymbol, tdesign, tor tcombination tof twords tand
tdesigns tthat tserve tto tidentify tand tdistinguish tthe tsource tof tgoods tor tservices tfrom tother tentities.
tTrademarks tprotect tbrand tnames tand tlogos tused tin tconnection twith tgoods tand tservices.
In tSingapore, ttrademarks tmay tbe tprotected tvia tthree tdifferent tforms: tcommon tlaw trights tand
tfederal ttrademark trights. tCommon tlaw trights tin tthe tSingapore tmay tbe tclaimed tby ttrademark towners
twho tcontinuously tuse ta ttrademark tin tconnection twith tgoods tor tservices tin tcommerce. t

Common tlaw ttrademarks tare ttypically tdesignated twith ta t™ tsymbol tand tshould tbe tused
twhen ta ttrademark towner teither thas tnot tapplied tfor tfederal ttrademark tprotection tor tis twaiting tfor ta
tpending tfederal ttrademark tapplication tto tregister. tWhile tcommon tlaw trights tmay tbuild
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goodwill tin ta tbusiness’s tbrand, t and t puts t others t on t notice t that t a t business t is tclaiming t
trademark trights tfor t particular t goods t and/or t services, t it t does t not t afford t the t same t protection t
as t state t or tfederal ttrademarks.
t

Singapore tfederal ttrademark taffords ttrademark towners twith tthe tmost tprotection tin tthat
it tprovides tnationwide trights tand tis tproperly tdesignated twith ta t® tregistration tsymbol. tFederal
ttrademark tregistrations tprovide ta tlegal tpresumption tas tto tthe ttrademark’s tvalidity tand townership,
tas twell tas tthe ttrademark towner’s texclusive tright tto tuse tthe ttrademark taround tthe tcountry ton tor tin
tconnection twith tthe tgoods tand/or tservices tregistered twith tthe ttrademark. t
t

In tthe ttransportation tindustry, tbusinesses ttypically toffer tmultiple ttypes tof tgoods tand
tservices. tTrademark tprotection tmay tbe tvaluable tfor tprotecting ta tbusiness’s tmain tbrand, tas twell
tas tparticular tgoods tand tservices twithin ta tsub-brand. tIt tcan tbe timportant tfor tbusinesses tto tprotect
ttheir tvaluable tbrands, twhich tare tused tin tassociation twith ttheir tgoods tand tservices, tso tas tto tensure
tthat tconsumers tare table tto tidentify tand tdistinguish tone tbusiness’s tgoods tand tservices tfrom tthose
tof ttheir tcompetitors. tOf tsignificant timportance, ttrademark towners tshould tnote tthat ttrademark
tregistrations tin tone tcountry tdo tnot tcarry tthe tprotections tafforded tthat tregistration tover tinto tanother
tcountry twhere ta tbusiness tdoes tnot town ta ttrademark tregistration. t
7.3. tCopyright
Copyright tprotection tis tgranted tby tlaw tfor toriginal tworks tof tauthorship tfixed tin ta
ttangible tmedium tof texpression. tCopyright tprotects tboth tpublished tand tunpublished tworks. tLike
ttrademarks, tcommon tlaw tcopyright tprotection tmay tbe tclaimed tin tSingapore tby tadding ta t©
tsymbol tafter ta tclaimed twork tof tauthorship. tCopyright tprotects toriginal tliterary, tdramatic, tmusical,
tand tartistic tworks tas tsoon tas tthe twork tis tcreated tand tfixed tin ta ttangible tform.
In tthe ttransportation tindustry, tmany taspects tof ta tcompany’s tbusiness tmay tbe tprotected
tthrough tcopyright, tincluding twebsite tcontent tand tdisplay, tsoftware tsource tcode, tand tinstruction

tmanuals. tLike ttrademarks, tregistration tof ta tcopyright tin tone tcountry tdoes tnot tprovide tautomatic
tprotection tin tanother tcountry. t
7.4. tTrade tSecret
In tSingapore, ta ttrade tsecret tis tinformation tthat ta tbusiness teither tactively tderives tor
tcould tderive teconomic tvalue tfrom tbecause tthe tinformation tis tnot tknown tto tothers. tA ttrade tsecret
thas tvalue tto tothers twho tare tunable tto tobtain tthe tinformation. tThe towner tof ta ttrade tsecret tshould
tuse treasonable tefforts tto tmaintain tthe tsecrecy tof tthe tinformation. tEach tof tthese tpreceding tthree
telements tmust tbe tpresent tfor ta ttrade tsecret tto texist. tAs tlong tas tthese telements tremain tprotected, ta
ttrade tsecret thas tthe tpotential tfor tan tunlimited tterm. tTrade tsecrets tdo tnot trequire tany tformal tfiling
tprocess twith tthe trelevant tintellectual tproperty toffices tof ta tjurisdiction.
Due tto tthe tvital timportance tof tmaintaining ttrade tsecret tconfidentiality, tbusinesses tare
twise tto tconsider temploying tmultiple tmethods tto tkeep temployees tfrom tsharing tvaluable
tconfidential tinformation. tProtective tmeasures tcan tinclude tutilizing tsecure tfacilities tto tkeep tany
tvaluable tproducts, tsuch tas tmachinery, tfrom tview tby tindividuals twho tare tnot temployed tby tthe
tbusiness, tor teven temployees twho tare tnot trequired tto thave taccess tto tthe tmaterial tsubject tto ttrade
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secrets tto tdo t their t jobs. tIn taddition, t employment t agreements t should ttypically t include t a
confidentiality tsection t designed t to t protect t a tcompany’s tintellectual t property t (including t its t
trade tsecrets). t
Another tmethod tto tprotect ta tbusiness’s ttrade tsecrets tincludes tthe tuse tof tnondisclosure tagreements. tIn tthe ttransportation tindustry, ttrade tsecrets tmay texist, tfor texample
tregarding tshipping tmethods. tIt tis timportant tto tnote tthat ttrade tsecrets tdiffer tfrom tpatent tprotection.
tWhile tpatents, twhich tprovide tthe tability tfor tinventors tto texclude tothers tfrom tmaking, tusing,
tselling, toffering tto tsell, tor timporting tthe tpatented tinvention, trequire tan tinventor tto tprovide ta
tdetailed tdescription tof thow tto tmake tand tuse tthe tclaimed tinvention, ttrade tsecrets trequire tthat
tbusinesses tkeep tthe ttrade tsecrets tconfidential. tThis tmeans tthat tno trights tare tafforded tto ttrade
tsecret towners tto texclude tothers tfrom tusing tthat tinformation tif tthe ttrade tsecrets tare tdisclosed.

tBusiness towners tshould tconsider tthe tpotential tpros tand tcons tof tseeking tpatent tprotection tor tto
tmaintain ttrade tsecrets.
t
t

III - Amazon in Singapore – Opportunities and Challenges
t

t

t

t

t

t

t

t

1. tOpportunities
1.1. t Amazon t brand t characteristics t suitable t for t Singapore tmarket
With tthe tstrength tof tproducts tfrom tUS tbrands, telectronic tbooks tand tpaper tbooks, tAmazon
tentered tSingapore twith ta twell-established tand ttrusted tbrand timage. tSingaporean tcustomers, tcompared
tto tthe tother tconsumers tin tSoutheast tAsia, thave thigher tincome, talready tbuying tmore tproducts tfrom
toverseas tand talso tare tmore tfamiliar twith twestern tculture. t(Choudhury, 2017) tWith tAmazon tPrime,
twhich thas tbuilt ta tlarge tamount tof tloyalty tcustomers tin tthe tUS, tAmazon tentered

Singapore twith tthe tintention tof thaving tthe tsame teffect twith twhat tthey thave taccomplished tin tthe
tUS tbecause tof tthe ttwo tcountries’ tsimilarity. tAmazon, tas ta tgiant ttech tplayer, tcan talso tuse tits
ttechnological tstrengths tto tboost tthe tcustomers’ tshopping texperience. tWith ta tpopulation tof tfive
tmillion tpeople, tSingapore tis talso tAmazon's ttop texport tdestination tfor tthings tpurchased ton tits
tglobal twebsite. tDave tClark, tAmazon's tSVP tWorldwide tOperations, tbelieves tSingapore tis ta
tfantastic tfit tand ta tgreat topportunity tfor tAmazon's texpansion tbecause tof tits tinnovative tculture tand
ttech-forward tenvironment.
t

1.2. tThe tbooming te-Conomy tin tSoutheast tAsia
In t2019, tSingapore twas treported tto tsurpassed tthe tUS$100 tbillion tmark, tand tit’s tpredicted tto
ttriple tthe tgrowth trate tin t2025 t(e-Conomy tSEA t2019 tstudy). tRevenue trecognized tfrom te-Commerce
tonly thas ttotal tover tUS t$38 tbillion, twith tthe tgrowth trate tof tonline tshopping tpassed t20 tto t35%, ttogether
twith tits textraordinarily thigh tinternet tpenetration trate, tshowed tthat te-Commerce tis tvery tlikely tto thave ta
tbright tfuture tin tSingapore. tFurthermore, taccording tto tStatista, tthe tmarket trevenue tof te-commerce tin
tSingapore twill treach t$2.793 tbillion tin t2021, trepresenting ta t16.1%

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year-on-year tincrease. t In t2021, t the t market's t 3.3 t million t shoppers t will t have t an taverage t
revenue tper tuser t(ARPU) tof tUS$846 t96, tup tfrom tUS$784 t52 tin t2018. t(Google, et al., 2019)
t

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2. tChallenges
2.1. t Amazon t platform t hasn’t tsuited t with t Singaporean tpreference
After t two t years t expanding t market t in tSingapore t with t its tPrime t Now t app t that t
th
only tavailable tto tSingaporean t people, t the t e-commerce t leader t from t the t US tjust t ranked t 12
tplace t in tunique tvisits t to tshopping t sites, t a t large t distance t with t bigger t competitors t like t
Lazada, t Shopee t and tQoo10. t

Figure t2: tRanking tof tSingapore's te-commerce tsites
Analysts tpoint tout tthat tAmazon's tprimary tdisadvantage tis tits tentirely tonline tplatform,
tas tconsumers tincreasingly tprefer ta tcomprehensive tshopping texperience tthat tincorporates tthe tbest
tof tboth tbrick-and-mortar tand te-commerce, tor twhat tis treferred tas t'click-and-mortar'. tThe tfirst tand
tthird-placed tcompanies, tLazada tand tShoppe, thave tdiverse tperspectives tto tthe tSingapore tecommerce tbusiness. tAccording tto tLazada's t'shoppertainment' tstrategy, ttime tthat tcustomers tused tto
tspend ton tmobile tapps trelates tdirectly twith trevenue tfor tonline tretailers tand tride-hailing tservices tin
tSoutheast tAsia, twhereas t"regular tonline tcustomers tare tless tlikely tto tspend ttime tonline" tin
tdeveloped tmarkets tsuch tas tthe tUnited tStates, tEurope, tand tJapan. t
Shopee, ta tSingaporean te-commerce tplatform tsupported tby tChina's tTencent, tthe
rd

country's t3 tmost tpopular tonline tstore, tclaims tto thave tfully tnoticed tthe tconcept tthat tthe tlonger
tcustomers tspend ton tthe tplatform, tthe tmore tmoney tthey twant tto tspend. tShopee, ta tSingaporean tecommerce tplatform tsupported tby tChina's tTencent, tthe tcountry's tthird tmost tpopular tonline tstore,
tclaims tto thave tfully tembraced tthe tconcept tthat tthe tlonger tcustomers tspend ton tthe tplatform, tthe
tmore tmoney tthey tspend t(AKANE OKUTSU & RURIKA IMAHASHI, 2019). t
t

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In tcontrast t to tAmazon, twhich t encourages t users tto tshop t as t quickly t as t possible, t
Lazada tSingapore tCEO t James t Chang t said t the t company t wants t to t "build t it t more t entertaining
t and t enable tconsumers tto t spend t more t hours ton tits tplatform," t and t that t "there's t a t difference t in
t terms t of t the tshopping tphilosophy" t between t Amazon t and t Lazada. t While t Amazon t motivates t
costumers t to t pay tfor tthe t products t they t want t as t quickly t as t possible, t Lazada t Singapore t CEO t
James t Chang t said tthe tcompany twants t to t "build t it t more t entertaining t and t enable t consumers t
to t spend t more t hours t on t its tplatform," tand t that t "there t are t different t strategies t regarding t to t
the t shopping t philosophy" t between tAmazon tand tLazada.
2.2. t Singaporean t shopping t habits t t
Citizens twho tfavor tphysical tmarket tare tnot tshowing ttheir tpreference tof tbuying
tgroceries ton te-commerce tsites. tMost tinhabitants tnowadays tlive tclose tto tgrocery tstores tand tmalls,
tso texpanding tproduct toffers ton tAmazon's tPrime tNow tsame-day tdelivery tservice tare tunlikely tto
tattract tthem. tIn t2016, tgrocery tcontributed tjust t1.2 tpercent tof tSingapore's tentire tgrocery tmarket,
taccording tto tthe tInstitute tof tGrocery tDistribution tOnline. t
Furthermore, tonline tgrocery tordering taccounts tfor tlittle tbelow t2% tof tthe tretail tmarket
tin tthe tcity-state, twith tAmazon taccounting tfor ta tsmall tportion tof tthat t(Singapore tBusiness
tReview). tAs ta tconsequence, tit tindicates tthat tAmazon thasn’t tsucceed tin tgaining ta tfoothold tin
tSingapore's tretail tbusiness.
2.3. tCompetition twith tother tecommerce tplatforms
Rank

E-commerce
tPlatform

1

Shopee

2

Lazada

3

Qoo10

4

Amazon.sg

5

EZBuy

Figure t3: tThe tmost tpo
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th

Amazon twas t placed t 5 tin t"the t most t popular t e-commerce t platforms t in tSingapore", t
based ton toverall t e-commerce t usage. t From t the t first t to t the t second t quarters t of t 2021, t the t
nd
number t of tpersons taccessed t the t service t rose t by t 29%. t During t the t 2 tquarter, t the t company t
received t about t1.7 tmillion t visits. t Nevertheless, t when t comparing t to t other t platforms, t this t was
tnot t a t very timpressive toutcome, t as t the t most t popular t e-commerce t website t Shopee t had t a t
spike t of t 82 t percent tin tusers t from t the t first t to t the t second t quarter t of t 2021, t with t

nd
approximately t 10 t million t visitors t just tin tthe t 2 tquarter. t

IV – Recommendations for Amazon
t

t

t

t

1. tOffline-store
To tfurther t support t its tgrowth, t Amazon t could t put tin tplace t a t“click-and- mortar” tconcept
tthrough tpick-up t points t at t transport t hubs t like t MRT t stations t or t through t local t convenience tstores.

For tweb tretailers, tthe tlure tof topening ta tphysical tstore tto tcater tto tSingaporean tshoppers
tis tproving thard tto tignore. tVivre tActivewear, tan texercise tclothing tbrand tthat twas tfirst tlaunched
tonline tin tApril t2014, tdecided tto topen ta tstore ttwo tyears tago tbecause tcustomers tprefer tto tsee t“the
treal tthings,” taccording tto tKevin tChia, tthe tapparel tmaker’s tco-founder. tNow, t80 tpercent tof tthe
tbrand’s ttotal trevenue tis tderived tfrom tstore tsales, the tsaid. t“You tjust tneed tto tbe tpresent tfor tyour
tshopper twhenever tshe tfeels tlike tshe’s tready tto tbuy,” tsaid tAli tPotia, twho truns tMcKinsey t& tCo.’s
tAsia tConsumer tInsights tCenter.
Lazada thas talready tteamed tup twith tSingapore treal-estate toperator tCapitaLand tLtd.,
letting tpeople tshop tonline tand tpick tup tmerchandise tat ta tnearby tmall. t“This tcloses tthe tonline-tooffline tloop tand tgives tcustomers tthe tfull tshopping texperience,” tLanternier tsaid.
t

Amazon’s t$13.7 tbillion tpurchase tof tWhole tFoods tshows tthat tit’s tincreasingly topen tto
thaving ta tphysical tpresence. tIn tIndia, tAmazon trecently ttook ta t5 tpercent tstake tin tShoppers tStop
tLtd. twith tplans tto topen texperience tcentres tat tthe tretailer’s tstores tfor tcustomers tto ttry tout tproducts

tthat tare tsold tonline.
“The tmain treason tthat tshoppers tcontinue tto tshop tin ta tphysical tstore tis tdue tto tthe tinstore texperience t– tsomething tirreplaceable tby te-commerce,” tsaid tTan tYong tKee, tmanaging
tdirector tat tAsiaMalls tSdn, twhich toperates tsix tshopping tcentres tin tSingapore. tBy t Sterling tWong tin
tSingapore, tLivia t Yap t and t Melissa t Cheok. t Additional t reporting t by t Yoolim t Lee; t editors: t
Divya tBalji, tK. tOanh tHa, tRobert tFenner, tReed tStevenson tand tJeff tSutherland.
Open tphysical tsites twhere tcustomers tcan tphysically tget tthe t“Amazon texperience”
tTying tthese tcenters tto texisting tdistribution tand tdelivery tcenters twill tmake tthem tmuch tmore tcost
teffective tthan tbuilding tunique tbrick tand tmortar tbuildings. tHave tstations twhere tpeople twith tlimited
taccess tcan tcome tand torder tfrom tAmazon.com tand tpick tup tthemselves tat tthese tcenters.
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2. tImproving t online t platform
In taddition tto tpreviously t waiving t commissions t for t sellers, tit thas t worked tto tkeep
customers ton t the t platform: t It toffers t games, t quizzes t and t live t streaming t videos t to tserve t a
tpopulation tthat t spends t more t and t more t time ton t mobile t phones. t With t more t than t 95% t of t its
torders tcoming tfrom t mobile t users, t Shopee, t which t has t surged t in tpopularity t since t its t2015 t
launch, t is tbetting tthat t by t enhancing t in-app t experiences t it tcan tnot t only t keep t users t online t
longer t but t also tkeep tthem tcoming tback.
t

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REFERENCES
1. tAKANE tOKUTSU t & tRURIKA t IMAHASHI, t 2019. t Nikkei t Asia. t[Online]. t Available t at: t

/>2. tAnon., t2019. tThe t Institute t of t Grocery t Distribution, tChoudhury, tA. tR., t2017. tBusiness t
Times. t[Online]. tAvailable tat: t
3. tGoogle, tTemasek t& tCompany, tB. t&., t2019. tThe t e-Conomy t SEA t 2019 t
report, ts.l.: ts.n. Müller, tJ., t2021. tStatista. t[Online]. tAvailable tat:
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/>
4. tStatista, t2021. tStatista. t[Online]. tAvailable tat:
t />5. tFeaman, tO. tbehalf tof tT.L.O. tof tP.M. tand tP.A. t(2015). tHow tDo tGovernment tRegulations
tAffect tBusinesses? t| tLaw tOffice tof tPeter tM. tFeaman, tP.A. t[Online]. tAvailable tat:
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t[Online]. tAvailable tat: t t[Accessed t26 tNov. t2021]
7. tTạp tchí tPháp tLý. t(2020). tMôi ttrường tpháp tlý tkinh tdoanh tở tMỹ tvà tSingapore.
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8. tMacquarie tUniversity. t(n.d.). tPolitical tdevelopments tin tSingapore. t[Online] tAvailable tat:
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9. t1 t(n.d.). tSingapore t- tMarket tEntry tStrategy. t[online] twww.trade.gov. tAvailable tat:
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tGuidemesingapore.com. tAvailable tat: t />11. tCorporateServices.com. t(2019). tSingapore tTax tRates, tTax tSystem, tTax tIncentives t - t
2019 tGuide. t[online] tAvailable tat: t />
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12. twww.great.gov.uk. t (n.d.). t Singapore tmarket tguide t- tgreat.gov.uk. t [online] t Available t at:
t t[Accessed t13 tDec. t2020].

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